It is a kind of financial derivative instrument, which uses a certain proportion of funds to buy and sell various kinds of financial derivatives, and expands the value-added transaction hundreds or even hundreds of times along the direction of volatility, also known as leverage.
Margin forex was born in the 1970s.
The deposit?
Margin refers to the use of leverage to increase the purchasing power of investors.
For example, if you choose 100 times leverage and you invest 1000 in the market, if you use margin trading, you can leverage the market by 1000×100= 100,000 dollars to trade.
It should be noted that margin trading can amplify not only your profits but also your losses.
Just like you do in business, with more money, you can get into many different products at once.
When those products go up in value at that time, you make more money.
However, if these products are reduced in price, the more goods come in, the greater the loss.
Therefore, we need to master the rules of margin trading in order to better control the risk of your account during trading.
To better illustrate, let’s take an example.
Dollar calculation: for example, if the leverage ratio of Japan and Japan is 100 times, the margin is 100,000 ¡Â100= $1000, 0.1 lot margin is 10,000 ¡Â100= $100, and so on.
Calculation: For example, in Europe and the United States, the primary margin is equal to the exchange rate in Europe and the United States multiplied by 100000¡Â leverage.
If the remittance from Europe and the United States is 1.5000 and the leverage ratio is 100 times, the margin is: 15000 x10000¡Â100=1500 USD, and the 0.1 lot margin is the exchange rate of Europe and the United States x10000¡Â100=150 USD.
Other currencies are calculated: for example, pound sterling, the primary margin is the remittance of the currency pair x 100,000 x the Euro-American exchange rate divided by the leverage.
For example, the pound Swiss exchange rate is 1.6000, the European and American exchange rate is 1.5000, the leverage is 100, the margin is 16000x 100000 x 1.5000¡Â100=2400 US dollars, and the 0.1 lot margin is 16000×1000¡Â5000¡Â100=240 US dollars.
The characteristics of foreign exchange margin: 1. Low investment cost, less than 10% of the actual investment;
2. Two-way trading and investment, both ups and downs have profit opportunities;
3, high profit, a day’s profit may more than double;
4. Risk controllability, limit price and stop loss points can be set;
5. The funds are flexible and can be withdrawn at any time;
6. Global 24-hour trading, with many profit opportunities;
7, the handling fee is low, less than one thousandth;
8. Global daily trading volume exceeds $1 trillion, which is not easily manipulated;
9. High transparency, all quotes, data and news are open. 10. Fast trading, in most cases, forex is traded in real time;
11. Foreign exchange margin is an easy investment to get started in, and the main factors of profit are experience, information and luck.
The foreign exchange industry is one of the most important financial segments in the world.
It is critical if any big country wants to become a financial power.
The dollar rose, gold fell sharply after hitting 1,820, and oil rose for a fifth straight day.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
